Nigeria Trails Behind Botswana and Morocco in Real Estate Investment Amid Economic Challenges, Reveals Estate Intel Report
A recent report from Estate Intel highlights Nigeria’s lagging foreign direct investment in the real estate sector, attributing it to surging inflation, a weakened Naira, and elevated production costs.
Investors in Nigeria are expressing concerns, as revealed by Estate Intel, citing worries about inflation, escalating debt levels, and potential default rates.
In 2023, Nigeria’s Naira experienced the highest depreciation, plummeting by 83% according to the official rate, as detailed in the report.
READ ALSO: 5 real estate factors beyond your control in Lagos
Interestingly, Nigeria is positioned as the third-last market due to significant currency fluctuations (83.66% YTD), a high inflation rate (27.33%), and costly construction at USD1,700 per sqm, as noted in the report.
Conversely, Botswana and Morocco emerge as top contenders in the real estate market attractiveness ranking, driven by relative currency stability, low inflation rates, and more affordable construction costs, the report emphasizes.
Recent data from the National Bureau of Statistics indicates that Nigeria’s headline inflation rose to 28.92% in December.
READ ALSO: How Canada’s Commercial Real Estate Markets Will Play Out In 2024
Furthermore, on Friday, the country’s currency was quoted at N902.45 per United States dollar, a substantial increase from N460 per dollar in May 2023.”
